The Reserve Bank of India on Thursday approved state-run insurer Life Insurance Corporation of India’s (LIC) application to acquire a 9.99% aggregate holding of paid-up share capital in HDFC Bank.
“Pursuant to Regulation 30 of the SEBI Listing Regulations, we would like to inform you that the Reserve Bank of India (“RBI”) vide its letter dated January 25, 2024, addressed to Life Insurance Corporation of India (“LIC”), has accorded its approval to LIC for acquiring aggregate holding up to 9.99% of the paid-up share capital or voting rights of HDFC Bank Limited,” the insurance company said in an exchange filing.
The central bank’s approval comes in light of an earlier application by the state-run insurer to acquire voting rights in the bank.
“The approval has been granted with reference to the application made by LIC to RBI. The aforesaid approval granted by RBI is subject to the conditions mentioned therein including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, provisions of the regulations issued by Securities and Exchange Board of India, and any other guidelines, regulations and statutes as applicable,” the filing added.
According to the RBI’s regulations, LIC will have to acquire the 9.99% stake within the year, while ensuring that its holding never crosses the 9.99% mark.
